Govt to import over a million tonnes of refined petroleum

The government will import 1.4 million metric tonnes of refined petroleum for a six-month period (July-Dec) of the current year from seven state-owned companies of six countries through negotiations.

fuel-supplying companies are PTLCL of Malaysia, PTTT of Thailand, BSP Zapin of Indonesia, Enoc of United Arab Emirates (UAE), KPC of Kuwait and two companies from China — Petrochina and Unipec.

According to official sources, state-owned Bangladesh Petroleum Corporation (BPC) has already completed the negotiations with the suppliers and the Cabinet Committee on Public Purchase (CCPP) also gave its nod to the procurement proposal on August 21 placed by the Energy and Mineral Resources Division.

They said a similar quantity of petroleum products will be imported from international companies through an open tender process.

The annual demand for petroleum in the country is about 6.5 million metric tonnes of which about 5.6 million is imported refined fuel, the sources said.

They mentioned that the BPC follows such a policy as part of the government's strategy to import half of petroleum products from state-owned companies through negotiations and remaining half from international market through open tender process to ensure a smooth supply of petroleum in the country.

Official sources said the planned import of 1.4 million mts of petroleum will cost approximately $819.306 million (equivalent to Tk 6923.11 crore).

Of this, $784.857 million (Tk 6632.03 crore) will be spent as value of the products while $34.449 million (Tk 291.08 crore) for premium which covers transportation and other charges.

the proposed import, official documents show, the diesel (gas oil) is 1.120 million mts (about 8.355 million barrel), jet A-1 is 145,000 mts (1.160 million barrel), petrol (mogas) 30,000 mts (258,000 barrel) and furnace oil 140,000 mts.
The BPC set the premium price at $2.95 for each barrel of diesel while $3.95 for each barrel of jet A-1, $4.90 for petrol and $28.25 for each metric tonne of furnace oil while the price of petroleum will be fixed on average of five days price as per bill of landing date.

As per the negotiation, the BPC will import 130,000 mts of diesel, 10,000 mts of jet A-1 and 40,000 mts of furnace oil from Malaysia's state-owned PTLCL while Thailand's PTTT will supply 60,000 mts of diesel and 20,000 mt of furnace oil.

Indonesia's BSP Zapin will supply 90,000 mts of diesel and 40,000 mts of furnace oil, 30,000 mts of petrol and 15,000 of jet A-1 while UAE's ENOC will supply 90,000 mts of diesel and 20,000 mts of furnace oil.

Kuwait's KPC will provide 540,000 mts of diesel and 120,000 mts of jet A-1 fuel while China's Petrochina 60,000 mts of diesel and 20,000 mts of furnace oil.

Another Chinese state-owned company Unipec will supply 150,000 mts of diesel, said the sources at the BPC.